Why are people in the stock market running around so much?
September 11th, 2008 | by Michael |
Just Bored asked:
I always see footage of the stock market and people are running around like crazy and yelling over each other. It seems so chaotic. I know nothing about the stock market or how it works. I know the basics but that’s it. I am just curious. Hopefully someone can give me a good answer and not a smart *** comment or remark. Thanks.
JAY
I always see footage of the stock market and people are running around like crazy and yelling over each other. It seems so chaotic. I know nothing about the stock market or how it works. I know the basics but that’s it. I am just curious. Hopefully someone can give me a good answer and not a smart *** comment or remark. Thanks.
JAY
3 Responses to “Why are people in the stock market running around so much?”
By Bibs on Sep 14, 2008 | Reply
Most trading today is done electronically, but some floor trading is still done. In the floor trading system all the stocks traded on an exchange are assigned to a certain trading post. If a floor trader gets an order to buy or sell a stock he must go to the trading post there that stock is transacted and find another trader to match his order. If he can not fined such a person, he goes to the trading post to look at the book for standing orders that may have been offered earlier in the day or on a previous day and not consummated because they could not fine a buyer or seller at the price they were asking.
By bennyboy on Sep 17, 2008 | Reply
hi just bored..
I am a business major and I really don’t understand the trading floor.
here is a link though…
The reason everyone is so frantic is that there is so much at stake… stocks are falling and rising very quickly… this means that there is a lot to lose or a lot to gain.
for more info about why or finance questions finance pls email me.
By gregory_dittman on Sep 20, 2008 | Reply
The area is known as “the floor” and “the floor” is divided into “pits.” Each pit represents one product such as a company if the area is about stocks. There are people representing different major brokers that pay to be on the floor. These traders get orders from computers or people in booths above them. They use hand signals to communicate with one another. On the floor they do quick bids and pass notes among each other. Then they pass the deal back to the people on the booth and then they get a new order. The people in the booth are talking to other brokers. The brokers are talking to their customers. Most trades are now done by computers, and about 10% are done on the floor in the NYSE.